Big Trail Running Company Has Started to Produce Running Apparel

question 45

Multiple Choice

Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year: Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department.
At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel:
How much manufacturing overhead will be allocated to the trail running shoes? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

• A)$482,500
• B)$484,054
• C)$900,000
• D)$225,000

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Definitions:

Higher Returns

Higher Returns denote the increased earnings or gains achieved from an investment, surpassing the original amount invested.

Higher Risk

Higher risk denotes investments or actions that have a greater chance of loss or volatility, often associated with potentially higher returns.

Tax Rates

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Required Rate

The minimum return that investors demand for investing in a specific asset or undertaking a project.